Test Bank for - A Strategic Framework Third Edition Don Peppers...

Test Bank for Managing Customer Experience and Relationships, 3e Don Peppers, Martha Rogers (All Chapters Answers at the end of All Chapters) 1 / 4

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Managing Customer Experience and Relationships:

A Strategic Framework Third Edition

Don Peppers and Martha Rogers

SAMPLE Test Questions Chapter 1: Evolution of Relationships with Customers and Strategic Customer Experiences

Multiple choice: For the following questions, choose the best answer.

1. “Customer strategy” is: (pp. 3–5)

• the capability of matching customers and messaging in any medium, whether

traditional or digital

• finding customers for the products a company produces
• creating customer value by increasing the value of the customer base
• creating customer campaigns that win market share

2. Customer relationship management (CRM) is best characterized as: (pp. 5–6)

• an enterprise-wide strategy
• a marketing strategy
• a customer service discipline
• a software program
• any of the above

• For “Industrial Age” companies, competitive advantage is primarily based on: (pp. 3–4)
• product innovation
• brands
• customer information
• a and b

• For “Interactive Age” companies, competitive advantage is primarily based on: (pp. 4–5)
• product innovation
• brands
• customer information
• a and b

• Examples of customer-specific behaviors include all of the following except: (pp. 6–9) 2 / 4

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• Fans of a product band together on social networking sites and provide service

and recommendations to others.

• A supervisor orders more computer components by going to a Web page that

displays his firm’s contract terms, his own spending to date, and his departmental authorizations.

• A marketing copywriter develops a brochure aimed toward thirtysomething

suburban mothers and mails it out to all who fit that specific profile.

• A car-rental customer rents a car without having to complete another

reservation profile.

6. Analytical CRM includes the following: (p. 9)

• strategic planning
• cultural change management
• software installations
• measuring change management

• Traditional marketing’s “four Ps” apply to which part of the “get, keep, and grow”

customer strategy? (pp. 10–13)

• get
• keep
• grow
• a and b

• According to Philip Kotler, the following shifts have occurred as companies move from

mass marketing to customer-focused marketing except: (pp. 12–14)

• from market share to share of customer
• from direct contact with end users to reliance on efficient intermediaries
• from large customer segments to individual customers
• from pursuing all types of customers to pursuing high-potential-value customers

• Which of the following describes a customer-share strategy? (pp. 15–18)
• finding a constant stream of new customers
• using mass media to build brand and announce products
• differentiating products from competitors
• selling as many products as possible to one customer at a time

• The core benefit of a Learning Relationship for a customer is: (pp. 18–20)
• reduced switching cost
• lower priced products
• higher quality products
• increased product choice

11. The core benefit of Learning Relationship for an enterprise is: (p. 20)

• increased product innovation 3 / 4

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• greater profit margins
• greater customer loyalty
• all of the above

• If an enterprise ranked low in tailoring for customers but high in customer interaction,

it would find itself in which quadrant of Peppers and Rogers’ Enterprise Strategy Map?(p. 14)

a. Quadrant I: Mass Marketing

b. Quadrant II: Niche Marketing

c. Quadrant III: Database Marketing

d. Quadrant IV: One-to-One Learning Relationships

• Keeping long-term customers is more beneficial than continually acquiring new

customers because: (pp. 29–30)

• Long-term customers tend to pay full price for a product rather than a

discounted price.

• Loyal customers tend to give more referrals.
• Acquiring new customers costs more than keeping current ones.
• All of the above

Essay questions:

• Compare and contrast the mass marketing era with the interactive era. What are the

goals of each? What defines competitive advantage? What are the key technological tools?

• Define “customer relationship management.” What is its central purpose?
• What is a Learning Relationship? What are the benefits of a Learning Relationship—both

to the enterprise and to the customer?

• Describe why customer relationship management, or customer strategy, needs to be an

enterprise-wide strategy. How would it affect each of the five principal business

functions:

• financial
• production, logistics, and service delivery
• marketing communications, customer service, and interaction
• sales distribution and channel management
• organizational management strategy

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